Under what circumstances is a general release executed by a Brueggers Bagels franchisee and their guarantors?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| RELEASE ("Release") is executed on THIS GENERAL | by | |
|---|---|---|
| ("Franchisee") and | (collectively, "Guarantors") as a condition of the (1) | |
| transfer of the Bruegger's Development Agreement dated | ("Development Agreement") between Franchisee and Bruegger's Franchise Corporation. | |
| ("Franchisor"); (2) transfer of the Bruegger's Franchise Agreement dated | Agreement") between Franchisee and Franchisor; or (3) execution of a Successor Franchise | ("Franchise |
| Agreement by Franchisee and Franchisor. |
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, a general release is executed by the franchisee and their guarantors under specific conditions related to the franchise or development agreement. This release is required as a condition of (1) the transfer of the Bruegger's Development Agreement, (2) the transfer of the Bruegger's Franchise Agreement, or (3) the execution of a Successor Franchise Agreement between the franchisee and Brueggers Bagels.
The release involves the franchisee (and their parent company, subsidiaries, affiliates, officers, directors, shareholders, agents, and employees) and any guarantors releasing Brueggers Bagels from any claims, debts, liabilities, demands, obligations, actions, and causes of action arising out of or relating to the Franchise Agreement, the Development Agreement, or the relationship between the parties. However, this release does not extend to claims based on any representation made by Brueggers Bagels in the most recent Franchise Disclosure Document delivered to the franchisee.
It's important to note that the facts related to the release may change, and the franchisee and guarantors assume the risk of such changes. They also represent that they are the sole owners of all claims and rights released and have not assigned or transferred any claim. The franchisee and guarantors also agree not to initiate or participate in any legal proceedings against Brueggers Bagels related to any claim released. This release serves as a complete defense against any such claim and is binding on the successors, assigns, heirs, and personal representatives of Brueggers Bagels, the franchisee, and the guarantors.
However, the FDD stipulates some exceptions to the general release. For example, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act. Similarly, in Maryland and Minnesota, the release will not apply to any liability under the Maryland Franchise Registration and Disclosure Law or relieve any person from liability imposed by Minnesota Statute §§ 80C.01 - 80C.22, respectively. These stipulations ensure that franchisees retain certain statutory rights despite signing the general release.